Ichor (US:ICHR)2025-05-05 20:06Financial Performance - Q1 2025 revenue was $244.5 million, an increase of 4.9% from Q4 2024 ($233.3 million) and 21.4% from Q1 2024 ($201.4 million) [2] - The net loss for Q1 2025 was $(4.6) million, compared to $(3.9) million in Q4 2024 and $(9.0) million in Q1 2024 [2] - Non-GAAP net income for Q1 2025 was $4.2 million, compared to $2.8 million in Q4 2024 and a loss of $(2.7) million in Q1 2024 [3] - U.S. GAAP net loss for Q1 2025 was $4,559 thousand, compared to a loss of $3,943 thousand in Q4 2024 and $8,989 thousand in Q1 2024 [33] - Non-GAAP net income for Q1 2025 was $4,236 thousand, up from $2,761 thousand in Q4 2024, while Q1 2024 reported a loss of $2,712 thousand [33] Margins and Profitability - GAAP gross margin for Q1 2025 was 11.7%, slightly up from 11.6% in Q4 2024 and 11.4% in Q1 2024; non-GAAP gross margin was 12.4% [4] - Gross profit for the same period was $28,522 thousand, resulting in a gross margin of 11.7%, compared to 11.6% in the previous quarter and 11.4% a year ago [27] - Operating loss was $1,172 thousand, a slight improvement from a loss of $1,252 thousand in the previous quarter and a loss of $3,741 thousand a year ago [30] - Non-GAAP operating income for the three months ended March 28, 2025, was $6,575 thousand, compared to $5,602 thousand in the previous quarter and $2,432 thousand a year ago [30] Cash Flow and Liquidity - Cash and cash equivalents at the end of Q1 2025 were $109.3 million, an increase of $0.6 million from the prior year [6] - Operating activities provided $19.0 million in cash during Q1 2025, despite a net loss of $(4.6) million [7] - Net cash provided by operating activities for Q1 2025 was $18,977 thousand, a significant improvement from $(2,488) thousand in Q4 2024 and $4,804 thousand in Q1 2024 [36] - Free cash flow for Q1 2025 was $496 thousand, recovering from $(6,886) thousand in Q4 2024 and up from $314 thousand in Q1 2024 [36] Future Outlook - For Q2 2025, the company expects revenue between $225 million and $245 million, with GAAP diluted EPS ranging from $(0.06) to $0.04 [5] - The company is focused on maintaining a balanced revenue growth profile between the first and second halves of 2025, despite policy uncertainties affecting demand visibility [1] - The company anticipates meaningful gross margin improvement as it integrates internal component supply into high-volume manufacturing operations throughout 2025 [1] Assets and Expenditures - Total current assets increased to $459,834 thousand as of March 28, 2025, up from $452,620 thousand in the previous quarter and $421,221 thousand a year ago [22] - The company’s total assets reached $1,006,613 thousand as of March 28, 2025, an increase from $995,564 thousand in the previous quarter and $957,388 thousand a year ago [22] - Capital expenditures in Q1 2025 were $18,481 thousand, compared to $4,398 thousand in Q4 2024 and $4,490 thousand in Q1 2024 [36] - The company incurred capital expenditures of $18,481 thousand during the quarter, compared to $4,398 thousand in the previous quarter and $4,490 thousand a year ago [25] Other Considerations - The decrease in net operating assets and liabilities of $11.0 million was primarily due to an increase in accounts payable of $14.3 million [8] - Research and development expenses were $5,874 thousand, slightly up from $5,850 thousand in the previous quarter and $5,370 thousand a year ago [23] - The company incurred severance costs related to global reduction-in-force programs and the exit from Scotland operations in Q1 2025 [34] - A valuation allowance against deferred tax assets from Scotland and Korea operations was recorded in Q1 2025 [34] - Transaction-related costs associated with acquisitions were not incurred in Q1 2025, contrasting with $785 thousand in Q1 2024 [33]